TechFlow news, February 20 — According to Fortune, the U.S. Securities and Exchange Commission (SEC) has approved, for the first time, a registration application for an interest-bearing stablecoin.
The stablecoin YLDS, developed by digital asset firm Figure Markets, will be pegged to the U.S. dollar and offer an interest rate of SOFR minus 0.50%. Interest will accrue daily and be paid out monthly in either U.S. dollars or YLDS.
Holders can buy and sell YLDS around the clock on Figure Markets using U.S. dollars and other stablecoins, and redeem it for fiat currency during U.S. banking hours.
This stablecoin will be officially registered with the SEC as a security, placing it in the same financial category as stocks and bonds. Mike Cagney, CEO of Figure Markets, said YLDS will be available to users this Thursday, with holders required to complete KYC verification to receive daily earnings. Users who have not completed KYC verification may hold the stablecoin but will not earn interest.
